After a careful review of the case between Samsung Heavy Industries, SHI, and the Lagos Deep Offshore Limited, LADOL base, the Nigerian Ports Authority, NPA, has leased a total of 11.2426 hectares of the land to SHI with a view to protecting the company's investment at the base.
In a letter of offer sighted by Vanguard Maritime Report, the value of the lease is put at N219.2 million per annum bringing the total cost of the lease to N1.1 billion for five years.
In the offer letter with reference number QH/GM/L&AA/OP/L.1/488 and dated November 14, 2019, the Authority warned Samsung against re-leasing the said property without prior consent of the NPA adding that the lease by NPA to Samsung was a way of resolving the matter in the interest of the parties and the nation at large.
Part of the letter reads: "Following a thorough review of the case, the Authority has arrived at the decision to offer a direct lease of the 11.2426 hectares as a way of resolving the matter in the interest of the parties and the nation at large.
"You shall not sublet, transfer or otherwise part with possession of the facility without prior knowledge and written consent of the authority. The land and developments thereon will revert to the Authority at the end of the lease term without compensation."
The letter which was signed by Yusuf Ahmed, a general manager in charge of leasing, on behalf of the Managing Director of NPA also directed the management of Samsung to accept the offer within a week.
Vanguard Maritime Report gathered that Samsung has erected another entry and exit point to its part of the facility thereby cutting off LADOL's facility.